18 -- Review, Compilation, and Special Reports

18 -- Review, Compilation, and Special Reports - CPA...

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CPA AUDITING - STUDY UNIT 18 Review, Compilation, and Special Reports: Core Concepts A. Compilations. The accountant should not submit unaudited financial statements to the client or others unless, as a minimum, (s)he has complied with the provisions of AR 100 concerning compilations. A submission is defined as “presenting to a client or third parties financial statements that the accountant has prepared, either manually or through the use of computer software.” The accountant is not required to make inquiries or perform other procedures to verify, corroborate, or review information provided by the entity but should read the compiled financial statements and consider whether they appear to be in appropriate form and free of obvious material errors. The standard report states that the statements were compiled in accordance with Statement on Standards for Accounting and Review Services and that no assurance is provided. B. Review procedures consist of inquiries and analytical procedures. Inquiries should be made concerning the entity’s accounting principles and practices; procedures for recording, classifying, and summarizing transactions, and accumulating information for disclosures; actions taken at
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18 -- Review, Compilation, and Special Reports - CPA...

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